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Case Study

Estafeta: From fragmented ownership to developing commitment as responsible owners facing challenges in an uncertain business environment in Mexico

By Denise H. Kenyon-Rouvinez, Oscar Howell-Fernández and Jung Eung Park

11 pages

October 2019

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Reference: IMD-7-2101

Estafeta is a parcel delivery service provider in Mexico. Founded in 1979 by Gerd Grimm (an old wolf as he described himself) and his partners, the company has gone through unpredictable regulatory, legislative and fiscal environment in Mexico. As a German immigrant, Grimm combined the traditional long-held principles of the Mittelstand (German middle-size enterprise) with the new realities of an uncertain Mexican business environment. The combination of crisis-driven innovation and conservative business practices was successful so that Estafeta has hold its strong position in the domestic market against all the international major players like DHL and FedEx. After Mr. Grimm ́s death in 2013, Estafeta’s control ownership was orderly transferred to the four siblings in the founder’s family. In the process, the Grimm family has developed the governance protocols, formed the Family Council and assumed control of the Board of Directors. The transfer of power has not created immediate problems, but the divided ownership (also to three executives) structure could become an obstacle for future strategic decision-making. This case focuses how the second-generation family members discuss together and develop the governance structure to handle the ownership alignment. The readers will learn how the family try to become the responsible owners of the business with long-term vision in the uncertain Mexican environment.

Learning Objective

The process of establishing family governance with proactive communication to align the vision as responsible owners
How to thrive the business in the uncertain and unsecured [Mexican] environment.
The political and geographical situations impact the decision around the short and long-term visions.

Keywords

Strategy, Family Business, Entrepreneurship

Settings

America, Mexico
Estafeta, Logistics and Supply Chain
2013-2019

Type

Field Research

Available Languages

English

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